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Finding the next up-and-coming stock out of nowhere is every investors dream, but sometimes it’s just easier to play it safe with the established companies we all know and love. With the uncertainty of upcoming U.S. interest rate hikes looming over the entire global market, now could be the time to stick to the less-volatile mega-cap stocks.
We typically define “mega-cap” as companies with a market cap over $100 billion, meaning that these stocks belong to some of the largest and most recognizable brands in the world. Luckily, the Zacks Rank can be applied to companies of all shapes and sizes.
With that said, we’ve highlighted three mega-cap giants that could be solid buys right now. If you’re an investor looking to play things a bit safer as the market figures out exactly what it wants to do right now, check out these stocks:
With a market cap of over $148 billion, Taiwan Semiconductor Manufacturing Company is the world’s largest dedicated integrated circuit foundry and one of the true giants in the global semiconductor industry. The stock currently has a Zacks Rank #2 (Buy), and investors can feel even more confident based on the overall performance of semiconductor stocks this year. Our best stocks are found in the best industries, and Taiwan Semiconductor feels like a strong semiconductor play right now.
The Kraft Heinz Company is a food and beverage giant that produces some of the world’s most recognizable snacks and drinks, including Oscar Mayer, Capri Sun, Kool-Aid, Jell-O, Heinz Ketchup, Planters, and many more. The company’s market cap is nearly $105 billion, and the stock has earned a Zacks Rank #2 (Buy). Despite its size, Kraft Heinz is still experiencing impressive growth; our consensus estimates predict revenue growth of nearly 20% and earnings growth of nearly 48% this year.
3. Facebook
It’s seems like every time we expect Facebook to plateau, the company and its management, led by founder and CEO Mark Zuckerberg, come up with the next big idea. With a market cap of $365 billion, Facebook has used its social media platform to become the world’s largest advertising company. Thanks to its eight positive earnings estimate revisions within the past 60 days, Facebook has earned a Zacks Rank #1 (Strong Buy). With shares trading near their 52-week high, Facebook could be ready to establish a new range soon.
Bottom Line
There are no guarantees on the stock market, and it’s definitely not safe to assume a company will perform well simply because of its large market cap. However, there’s a noticeable amount of uncertainty surrounding the market right now, and that can cause volatility, especially in smaller, unproven stocks.
Investors interested in mega-cap stocks can also check out the Guggenheim S&P 500 Top 50 ETF (XLG - Free Report) and the iShares Global 100 ETF (IOO - Free Report) .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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3 Mega-Cap Stocks to Buy Now
Finding the next up-and-coming stock out of nowhere is every investors dream, but sometimes it’s just easier to play it safe with the established companies we all know and love. With the uncertainty of upcoming U.S. interest rate hikes looming over the entire global market, now could be the time to stick to the less-volatile mega-cap stocks.
We typically define “mega-cap” as companies with a market cap over $100 billion, meaning that these stocks belong to some of the largest and most recognizable brands in the world. Luckily, the Zacks Rank can be applied to companies of all shapes and sizes.
With that said, we’ve highlighted three mega-cap giants that could be solid buys right now. If you’re an investor looking to play things a bit safer as the market figures out exactly what it wants to do right now, check out these stocks:
1. Taiwan Semiconductor (TSM - Free Report)
With a market cap of over $148 billion, Taiwan Semiconductor Manufacturing Company is the world’s largest dedicated integrated circuit foundry and one of the true giants in the global semiconductor industry. The stock currently has a Zacks Rank #2 (Buy), and investors can feel even more confident based on the overall performance of semiconductor stocks this year. Our best stocks are found in the best industries, and Taiwan Semiconductor feels like a strong semiconductor play right now.
2. Kraft Heinz (KHC - Free Report)
The Kraft Heinz Company is a food and beverage giant that produces some of the world’s most recognizable snacks and drinks, including Oscar Mayer, Capri Sun, Kool-Aid, Jell-O, Heinz Ketchup, Planters, and many more. The company’s market cap is nearly $105 billion, and the stock has earned a Zacks Rank #2 (Buy). Despite its size, Kraft Heinz is still experiencing impressive growth; our consensus estimates predict revenue growth of nearly 20% and earnings growth of nearly 48% this year.
3. Facebook
It’s seems like every time we expect Facebook to plateau, the company and its management, led by founder and CEO Mark Zuckerberg, come up with the next big idea. With a market cap of $365 billion, Facebook has used its social media platform to become the world’s largest advertising company. Thanks to its eight positive earnings estimate revisions within the past 60 days, Facebook has earned a Zacks Rank #1 (Strong Buy). With shares trading near their 52-week high, Facebook could be ready to establish a new range soon.
Bottom Line
There are no guarantees on the stock market, and it’s definitely not safe to assume a company will perform well simply because of its large market cap. However, there’s a noticeable amount of uncertainty surrounding the market right now, and that can cause volatility, especially in smaller, unproven stocks.
Investors interested in mega-cap stocks can also check out the Guggenheim S&P 500 Top 50 ETF (XLG - Free Report) and the iShares Global 100 ETF (IOO - Free Report) .
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>